2017 is around the corner! While it's a fresh start for the calendar, many of the trends that were already underway in the real estate market in 2016 may carry through to the New Year. Here's what we see when we peer into the future.
1. Interest rates are expected to remain within their historically low range. In fact, the Mortgage Bankers Association's most recent mortgage finance forecast predicts the rates on 30-year fixed rate mortgages will increase steadily toward the 4.4% area1 throughout 2017, so many homeowners are acting quickly to take advantage today's low rates before they inch up.
2. Home values are also expected to continue rising at a moderate pace thanks to strong sources of demand. More Millennials are becoming first time home buyers, while Baby Boomers are moving into housing more appropriate for their retirement years. The current housing supply will also keep values moving up since smaller homes continue to be in greater demand and are in shorter supply. It's a trend that favors move-up buyers—those looking for larger homes—since that supply is expected to remain stronger than the demand for it, at least in the near-term.
3. "Surban" will be a strong contender for "word of the year" within the industry. The further melding of suburban-style living with urban settings—surban—is expected to find expression in even more new developments as buyers seek access to the best of both worlds.
4. Credit will become even more accessible. Despite concerns that student loan debt and poor job prospects will keep Millennials out of the market, mortgage companies are lending more freely. With a number of financing initiatives aimed specifically at first time buyers, obtaining credit is no longer the challenge it was several years ago, even for the youngest buyers.
5. Drones have found a home in real estate marketing. From being able to provide buyers with a comprehensive view of a large or a remote property at a reasonable cost to allowing sellers to feature their homes in a more thorough and affordable way, drones are taking up residence in the marketing arsenal of more and more Real Estate Agents.
Whatever the coming year brings, the real estate market appears poised for continued health.